Lemon Tree Hotels Ltd. share price target

Lemon Tree Hotels’ (LTH) Q4FY22 results reflect clear signs of recovery in room occupancy and rates as Mar’22 occupancies have risen to 60% and Q4FY22 gross ARR was at 90% of Q4FY20 levels. As per company, overall ARR has already crossed Rs5,000 in May’22 with business travel showing strong uptick.

LEMONTRE reported a better than expected sales and EBITDA. Revenue grew 2.1x YoY in 3QFY22, led by robust (+109%) RevPAR growth on account of a 15pp improvement in occupancy and 54% growth in ARR. EBITDA surged 3.2x YoY, benefitting from operating leverage. We decrease our FY22E/FY23E EBITDA estimate by 14%/13%, factoring in...

Strong retail demand; corporate travel to recover soon chain in the mid-priced segment in India. It operates 8,497 rooms in 87 hotels across 54 destinations in India and abroad under brands like Aurika (premium), Lemon Tree...

Adjusted loss stood at INR208m in 2QFY22 v/s a loss of INR371m in 2QFY21. Keys Hotels generated a revenue of INR71m (+1.9x QoQ and +31% YoY), with an EBITDA of INR9m (+200% YoY) in 2QFY22. It operated at 29.8% occupancy (+740bp YoY), with an ARR of INR2,053 (-3% YoY)....

About the stock::Promoted by Patanjali Keswani, Lemon Tree (LTHL) is the largest hotel chain in the mid-priced segment in India. It operates 8,300 rooms in 84 hotels across 52 destinations in India and abroad under brands like Aurika (premium),...

Performance set to improve sharply from H2FY22E onwards As the economy is now coming out of pandemic induced pain, LTH is also gradually moving to its full functionality with operational inventory rising from 71.5% in Q1 to 86.8% in Q2, 91.2% in Q3, 93.4% in Q4. Although improvement is getting visible in tourist destinations, a recovery in corporate travel may take at least five to six months due to ongoing work from home policy. We model occupancy of 60%, 69% and ARR of | 3930, | 4710 in FY22E, FY23E, respectively. LTH has taken measures to curtail costs, by taking salary...

As the economy is now coming out of pandemic induced pain, the company is also gradually moving to its full functionality with operational inventory increasing from 71.5% in Q1 to 86.8% in Q2 and 91.2% in Q3. Although, improvement is getting visible in tourist destinations, recovery in corporate travel will take at least eight to 12 months due to ongoing work from home policy. We model occupancy of 47%, 60% and ARR of | 3180, | 4455 in FY21E, FY22E, respectively. LTH has taken measures to curtail costs, by taking salary cuts, re-negotiating contracts, reducing repairs costs, reduction...